China supports EU efforts at financial stability

China supports measures taken by the European Union and the International Monetary Fund to stabilize Europe’s debt crisis, Vice Premier Wang Qishan said Tuesday.

China has also taken steps to help European nations combat the sovereign debt crisis, Wang said at the opening of the third China-EU High-Level Economic and Trade Dialogue.

Wang said the two sides “should have confidence and enhance cooperation to work together for a robust, sustainable and balanced growth,” according to the official Xinhua News Agency.

Last week, EU leaders agreed to the creation of a permanent rescue mechanism for debt-laden countries in 2013 that would replace an existing bailout fund.

Chen Deming, China’s minister of commerce, speaks at a press conference during the 3rd EU-China High-level Economic and Trade Dialogue at the Diaoyutai State Guesthouse in Beijing on Tuesday December 21, 2010.

Ireland last month agreed to borrow up to euro 67.5 billion ($90 billion) from the EU and International Monetary Fund and implement severe spending cuts as its economy staggered under the weight of massively indebted banks.

The Irish rescue followed the EU-IMF bailout of Greece earlier this year and added to fears that other financially weak countries including Portugal and Spain would need bailouts, imperiling the future of the euro common currency.

China has also been involved in bailing out European countries, offering in October to buy Greece’s debt. Last week, Portugal said that China had pledged increased support for its efforts to climb out of a financial crisis, reportedly promising to buy $4 billion in Portugese government debt.

The EU is China’s largest trading partner, while China is the EU’s second-largest trading partner behind the United States, Wang said. Two-way trade for the first 11 months this year reached $433.9 billion, an increase of 33 percent from the previous year.

Wang said global economic recovery is being hampered by weak demand, while world markets have excessive liquidity and are turbulent.

He reiterated that China would implement a prudent monetary policy to ensure the world’s second-largest economy can maintain steady growth.

“China is taking a proactive fiscal policy and stable currency policy, while the EU is actively taking measures to combat the debt crisis,” Wang said. “China and the EU should strengthen cooperation to promote strong, sustainable and all-around growth for the economies of China and EU and even the global economy.”

Wang said he expected “substantive” progress during the talks on a wide range of trade and economic issue, including recognition of China’s market economy status and the loosening of EU restrictions on high-tech goods exports.

Wang said China and the EU should cooperate in a variety of sectors, including new energy and environment protection, while fighting protectionist measures.